ABB Robotics specialises in industrial robots, such as large robotic arms that can make precise movements in factories.
Japan's SoftBank -- a major investor in ChatGPT creator OpenAI -- said the acquisition was part of its AI-focused business strategy.
"SoftBank's next frontier is Physical AI," SoftBank CEO Masayoshi Son said in a statement.
"We will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics -- driving a groundbreaking evolution that will propel humanity forward."
ABB Group issued a separate statement to announce the agreed sale of its robotics division to SoftBank for $5.37 billion.
The purchase will combine "ABB Robotics' leading technology and industry expertise with SoftBank's state-of-the-art capabilities in AI, robotics and next-generation computing", it said.
The transaction is expected to close in mid- to late-2026 pending regulatory approval.
ABB Robotics has a workforce of around 7,000, and its 2024 revenues of $2.3 billion represented around seven percent of ABB Group's total income.
ABB Group had previously planned to spin off the robotics business as a separately listed company.
SoftBank has pledged to plough at least $100 billion into US President Donald Trump's Stargate project to build AI infrastructure in the United States.
Meanwhile, China's Alibaba announced in September it was teaming up with US chip giant Nvidia on AI tech that it said will accelerate its development of humanoid robots.
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